Today’s companies – especially global players, tend to be run by people with MBAs and other lofty qualifications, many of top of the range educational institutions. But does all this education bring wiser decisions and better leadership of companies? If we look at the rise and fall of many major players over the last decade it would suggest that more than education is needed to make a success out of business.
Smart is about the command of Rational Intelligence; the ability to view a wide range of information, pick the most relevant for the situation and arrive at conclusions.
But what about being wise - a term that is not commonly used in the Corporate world, what does that entail? The subtleties of the difference are in how a wise person is ready to respond and not just interpret. Wise people have a sense of criticality, which means they will often ignore events that others seem intent on playing out, whilst addressing areas that are left ignored and unnoticed by others. This sense of criticality comes down to a more holistic thinking pattern; in being able to think through the implications, and the consequences (intended and unintended) before taking a course of action.
Modern leadership development however seems to rely almost entirely on the formal education process as THE way to develop Leaders. But more and more criticism at this Silo approach to Leadership which only focuses on the ‘Smart’ aspects of development is being raised.
But can we have one without the other? We can have Smart without wise as is seen in many corporations that meet their downfall, due to the maverick (aka Smart) leaders at their Helm. Think Lehman Brothers, RBS (UK).
But can you have Wise without Smart? This is much harder to achieve. Certainly all of us will have met very wise people who have not gone through a formal education process and yet excel in their field. But I have never met a wise person who is not naturally curious. Wise people expend considerable effort in educating themselves in their chosen field. Think – Richard Branson, who without formal education has built one of the biggest brands in the world.
Some of the best ways to separate the wise from the smart is observing them in situations. How do they react to sudden changes of plan, such as an important meeting that has been cancelled at the last minute? Or how do they deliver difficult news to their team? When the pressure is on, where do they spend their time? Is it on their computer firing off emails, or is it with their team looking at options to relieve the pressure?
Of course some of this suggests that Smart people are always self-serving and Wise people are in service of the overall goal. Whilst life is never as simple and clear cut as this, there is something to be learned from observing your behaviour and those around you and asking – who am I really serving here and is this the right place to be investing my energy? This reflection alone will get you one step closer to wise.
Do you have observations and comments on the differences in Wise or Smart people. We would love to hear your comments here. Or contact us at: [email protected]
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